Home / Knowledge / News / Apparel/Garments / Indian govt to revise FDI cap in some sectors next month
Indian govt to revise FDI cap in some sectors next month
Jun '13
The Government of India would revise foreign direct investment (FDI) caps for some sectors next month, Finance Minister P Chidambaram has said.
Last week, a Government Panel headed by department of economic affairs Secretary Arvind Mayaram suggested in its report that the FDI caps should be changed to three-tier structure of 49 percent, 74 percent and 100 percent, instead of the present four-tier structure of 26, 49, 74 and 100 percent.
Among other things, the panel suggested that the FDI cap in multi-brand retail trading (MBRT) should be raised to 74 percent.
In its report, the panel said on the basis of the principle of ownership and control, there needs to be only three categories. In those sectors where foreign ownership and control cannot be allowed, FDI can be permitted up to 49 percent with the definition of control.
In sectors or activities where ownership and control is not material, FDI up to 100 percent can be allowed. However, in some sectors where a degree of Indian participation is considered necessary, although foreign ownership and control is permitted, the FDI limit can be capped at 74 percent, the panel suggested.
The Department of Industrial Policy and Promotions (DIPP) will discuss separately with all Ministries and submit a note to the Cabinet for revision of FDI limit in some sectors, Finance Minister told reporters on the sidelines of an event organized by Crisil for the launch of its new Index.
The revision of upper limit in FDI is aimed at making the country more attractive to investors. While the Government has been successful in attracting FDI in single-brand retail, where up to 100 percent FDI is allowed, it has so far failed to evoke good response from multi-brand retailers.

Fibre2fashion News Desk - India

Must ReadView All

Ghana makes tax stamp compulsory on imported textiles

Textiles | On 27th May 2018

Ghana makes tax stamp compulsory on imported textiles

To curb illegal imports, Ghanaian authorities will put a tax stamp on ...

Courtesy: Vishal Mega Mart

Apparel/Garments | On 27th May 2018

Partners Group, Kedaara Capital taking over VMM

Partners Group, a private markets investment manager, and Kedaara...

Courtesy: Deckers

Apparel/Garments | On 27th May 2018

Deckers Brands sales soar 8.4% in Q4FY18

Deckers Brands, a global leader in designing, marketing and...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search